Adidas

I moved the organization of one slide. The final ppt is below and on our wiki homepage. Kyle --

I printed out a copy, but some of the graphs do not print out correctly. When it prints it cuts out some of the legends. -Jeremy

I can print and bring to class. If it doesn't print at work due to pptx I'll print it at the computer lab. Kyle



I added a few things. Can someone print this off and bring it to class?

I can open the presentation and hand it over to Tom. I will then be ready to go over the Reebok acquisition and the following slides on adidas as a global player.

I will be checking back in at 5 as well.

-Ray 3:40pm

- Made Tom's suggestions about rewording and reorganizing - slide 39 is new answering the primary and leading into the Recos - Made Kyle's alt-strategy slide part of the Recos



I won't be able to check back until 5.

Dan 3:15PM

May want to reword the question to What is happening in the industry and how did adidas lose the lead to Nike? (that way look at broad to specific) Also rearrange slides to make the PEST slide 8 then the Porters overall slide then the Porters descriptive slide The the Nike and adidas comparison slide

I would do it but I cannot upload from work without things going crazy. I think last time I saved a message it actually deleted posts so sorry if their is a problem when I hit save. Actually may want to lose the PEST altogether cuz not sure it really offers much At this point I don't know. Tom 3pm

I agree, I think we can eliminate the last question. some of the graphs/charts are similar to the one I created about adidas presence globally.

-Ray 2:09pm

- Changed recommendation based on Tom's note. "Allow..." became "Be satisfied with #2..." - Moved PEST and Porter's to the "how did adidas lose..." question and reworded that question.



I think we should scrap the last question and move the alt-strategy slide to be part of our reccomendation. Thoughts?

I won't be able to check back until about 3.

Dan 1:56PM

Not sure about the word "allow", if they are #2 they are not allowing, they are getting beat. I like the increasing Reebok presence and converting adidas to Reebok, not sure I see adidas anywhere right now Keeping a strong #2 position is to their advantage though - it is a huge market

Sorry to hear that Ray, hope he feels better.

I have added the follwoing recommendation, I think it sums up the majority of our analysis/conclusions on some of the slides.

• Allow Nike to be the leader in the U.S. market. – Focus on strong growth potential in Europe, Asia, and Latin America. • Increase distribution networks in these markets • Increase brand loyalty and brand awareness in these markets through contractual endorsements with athletes

Do we want to also recommend something for the US market. Taking from one of the Alt Options - Increase Reebok & TM endorsements and convert adidas outlets to Reebok?


 * Also what if we put the PEST and Poter's in the **How did adidas lose the lead to Nike?** part??? We could even re-word this question to state How did adidas lose the lead to Nike and what does the rest of the indsutry look like?

Thanks, Jeremy



Hi guys,

I dont think I will be on again until right before class. Is someone working on the recommendations? I have to leave work and get my son from daycare. He is running a fever so they have to send him home.

thanks, Ray

Looking pretty good. Does anyone want to finish the recommendations? I will also be back on around 1pm and can do it if nobody else is planning to. I make a few small gramatical changes.

One question - should it be adidas' or adidas's when showing ownership? I changed everything to adidas's to be consistent but was not sure if that was right.

Ray 9:21am

Brand question finished.

- porter's/pest still need a home - recos need to be put in at the end.

If there's anything left at noon tomorrow, I should be able to work on it.

-Dan

Guys - I finished the retail outlet and SWOT slides... I deleted the previous SWOT slide and separated it into two different slides. The factors on the SWOT now only need impact scores and analysis needs to be added at the bottom of both slides (I remember prof's comment about each slide showing analysis).

I'm at work tomorrow and have limited access to edit the ppt as I don't have pptx at work and it can destroy the formatting when I open it. I'll be checking throughout the day tomorrow to see if there's anything else I can add to the recommendations. Kyle - Sun 11:45pm

Made a minor change - updated to v13 - Kyle

I edited the slides and formatted all smart art and graphics to fit the layout and color scheme. I still have a slide on the retail stores I am working on. I also changed all of the "Adidas" words to "adidas" throughout the ppt. - I think we need to fit Tom's slides in now where appropriate and finish our recommendations. - The only slide I don't feel shows analysis is the SWOT slide. I think we can re-design the slide to show analysis (rank the factors in order of importance/risk) - I'll finish that slide up tonight and my retail store slide (showing how adidas should re-brand the stores to Reebok stores). Kyle 10:53

As far as more recommendations. I don't think they should dissolve Reebok, I think they could use Reebok in the US as a namebrand to gain some market share on Nike in sports that Adidas is not the leader in (sports other than Soccer). They can increase their endorsement contracts in the US with the Reebok brand. From there, I think they need to focus on the Asia and "russian" markets and continue to focus their Adidas brand on those growing markets since there is so much growth potential there.

Jeremy 10:10

I have to be at work by 4am so if I need to do anything else it will have to be Monday. Off to bed I go. Tom 10pm

I added a title slide and cleaned up some other slides. As far as the Porter's and PEST... I think we can add them to the question How has Adidas's corporate strategy changed over time, specifically before & after the 2005-2006 restructuring? **We can add a sub question to that that says something like and what is going on in the industry during this time. Or we can just add a question after this part of the slides that leads into Porters & the PEST. But I think it would fit into the slides right around this area.

Jeremy 9:50pm

**

Added one slide about brand. I'll have another 1 - 2 to answer that question out soon.

Still need - Title slide - Finalized recomendations - Final decision on porters/pest

Dan 9:15

I agree with you Dan. I think the and leaves us open to take this in several directios.

-Ray 7:48

For the revised primary, I don't agree with the either/or logic. Can adidas not stay true to the brand, drive shareholder value, __and__ strive to be the global leader? I don't feel that strong about it...defer to the majority.

- Dan 6:57

The more I read our main question the more I don't like it. How about rewording to the below. Very similar, just easier to read. Also, are we capitalizing the word adidas in the presentation or not?

Does the adidas growth strategy, including recent acquisitions and corporate restructuring, stay true to its brand and work toward enhancing shareholder value by driving growth in key markets, or should they allocate all of their strengths and resources in an attempt to challenge Nike as the overall leader of the global sporting goods industry?

I'll be back in an hour or two for the brand slides. I think this is looking good. Closer to our dell effort than ebay. Any thoughts on where the PEST and Porters should fit in?

- Dan

Added the slide about losing lead to nike not sure if we cover topics elsewhere simple and staightforward Tom 3:45pm

I'm back on now. I'll do the ' What has the adidas brand represented in the past and what does it represent today?' **question in addition to finishing up the strategy. Ray, I'll include your point about outsourced manufacturing when covering that question.

Other thoughts... - Recommendation about dissolving Reebok...not sure I agree with this. I think it is a recognizable name in North America. Before reading this case, If someone said name Nike's competition Reebok would have been the first one to come to my mind. - Hockey and Soccer: The sports where Adidas is typically strong aren't that popular in the US. If Adidas wants to grow market share in the US, it could go above and beyond marketing these sports to kids. This would be a different growth strategy than signing notable basketball/football stars so they can go head to head with Nike. Promote the sports your strong in and grow that way. Just a thought.

Dan 3:30**

I added a couple more graphs to the Salomon slides, basically showing what Adidas got out of acquiring Talyor-Made in the deal. Dan, I went ahead and cut out the timeline slides - I agree Ray hits on the major points in his first couple of slides so no need to have them in.

Thanks, Jeremy



Tom, I am not covering that question. Is anyone else looking for slides to do? If so, how about something really calling out that 95% of Adidas manufactuing is outsourced. Basically all Adidas is now is a well known brand, an R&D and marketing firm.

Why did adidas loose the lead to Nike? I would say a lack of focus and not responding to changes in what consumers wanted. Nike succeeded by superior marketing strategy and basically small improvments on what adidas was already doing. It was style over substance.

Also really calling out that with adidas top athletes choose to use their products so adidas gave them to them for free versus Nike went out and paid top athletes to use their product. I think that is a big difference between the two.

I will be checking back later to see if we need any more slides.

Thanks, Ray 2:25

Anyone working on question "How did adidas lose the lead to Nike" If not, I can cover that one now. Tom 1pm

Hi guys,

I added some slides about reebok and broke the SWOT apart by Adidas and Reebok. Not sure if this works well or if I should create 1 slide of where adidas is strong and weak vs. reebok. Let me know what you think.

I think another strategic recommendation would be to disolve the Reebok brand altogether and focus on growning Adidas in the sports and makets where Reebok is strong. Not sure if that is the right recommendation but it is an option. I think the challenge is that Reebok's rep for poor quality and innovation might hurt adidas' strong rep. Plus, how big would it be for adidas to get the exposur that the NFL brings in the North American market.

Just a thought, Ray 12:30pm





- added 1 slide for strategy change - I'll have 1 - 2 more for strategy and then grab another question.

I'll be sparse until about 3. My wife works for someone in an elected position so she's pounding the pavement and I'm watching our son.

Dan 11:00 AM



- Added slides for primary and secondary questions - Minor reorganization - Added slides at the end that still need to be placed (Tom's pest, porters, swot) and ones that may need to be cut (the timeline). The timeline slides look great, but I think the prof is really looking for analysis on every slide where that is straight info from the case. Plus alot of the timeline is brought in when answering the 1st primary question like Jeremy mentioned. I think the timeline should be scrapped. - no new content otherwise.

Dan 8:40AM

Some thoughts on adidas PEST I am off to church now, Sunday 8am and this is my meals on wheels weekend so I will not be home until 1 or 2 pm. Sorry. PLEASE save me some work. I will think about some recommendations etc. while I am gone. Make sure we adjust the questions to fit our work as well and save me a question or two. I assume he expects alot from us on this one. Pest, Porters and Swot are just my thoughts and not the final of course. Please change or disregard as needed. Tom 8am Sunday



I'll grab this question ( How has Adidas's corporate strategy changed over time, specifically before and after the 2005-2006 restructuring? ) to start. I'll take another from what's left later.

- Dan

I added slides on the two questions: 1)__Should Adidas be concerned about losing North American market share to Nike?__ and 2) __Is there another corporate strategy Adidas should be pursuing?__ I wanted to wait on the corporate strategy question to see if the team wanted to make this our recommendations slides (and rank our top priority ideas). I still have to fix the slide on the retail stores. I'll get that tomorrow. Thanks - Kyle - Sat night

some thoughts on PORTERS 5 FORCES

Some thoughts on SWOT

Sorry I couldn't elaborate more earlier. I was trying to jump on this morning to check the progress. I can take the two secondary questions, 1)__Should Adidas be concerned about losing North American market share to Nike?__ and 2) __Is there another corporate strategy Adidas should be pursuing?__
 * I'll have them done by tonight. - Kyle 4/17 3:05pm**

I have added the timeline to the beginning of Ray's slides, he does bring up some of the same dates on his product innovation slide so if this is overkill we can dump it. I also worked on the Aquisition of Salomon and talked about how it changed their product offering & affected their stock price (made it fall). I am thinking they paid way too much since they utlimatley just got golf clubs out of the deal. I will be back on tomorrow to work on this some more.

Dan - I like your primary question. I think we should go ahead and go with that. The secondary questions all sound good to me, but we may have to tweek them as we work on our slides.

Thanks - Jeremy 4/17 at 2:05pm



Dan, I like those questions as well as the consolidated central question. Tom I think if you do a SWOT, PEST and Porters they will be able to help answer some of the secondary questions. I will continue to work on some slides to expand what made adidas a success in the past as well as their strength in emerging markets. I am tied up with stuff today but will be on again first thing tomorrow morning. Ray

Let's see if I have this right. I assume we agree on rough recommendations etc. Jeremy working on timeline, history, early success. Kyle working on "slides", not sure what. Dan organizing the questions. (8 secondary questions?) Looks like Ray has slides on innovation, net sales, markets etc.

What is easiest way to divde what needs to be done here at noon Saturday? Just divide up the questions amoung us? Or, I can put together a SWOT, PEST, and PORTERS and post for all to adjust or change as necessary? Tom

Secondary questions...I tried to group these where I thought the theme was similar. The chosen questions are bold and underlined. These are just suggestions to get the conversation going.

__What enabled Adidas to be the market leader in the past?__

__How did it lose that lead to Nike?__

__What has the adidas brand represented in the past and what does it represent today?__

How has Adidas's corporate strategy changed over time, specifically before and after the 2005-2006 restructuring? Is Adidas' current corporate structure aligned with stated corporate objectives? Is Adidas more likely to produce shareholder wealth by focusing on its core competencies or pursuing acquisitions that increase the breadth of its product lines?

How does __Has Adidas's acquisitions helped position itself against its competitors?__ Was the Reebok acquisition successful and why? Can Reebok contribute to future successes at Adidas?**
 * Was the Salomon acquisition successful and why?

__What role do developing countries have in Adidas's future success and how is Adidas's position in those countries?__ __Should Adidas be concerned about losing North American market share to Nike? Is there another corporate strategy Adidas should be pursuing?__ **(besides global market leader) Has Adidas positioned itself well in developing markets? Adidas focusing too much on future sales (China) at the cost of market share in North America (2008 lost market share to Nike for first time in N. America)
 * Should Adidas focus on Asia, Europe, etc. and concede 1st place in North America to Nike?**

Dan**

All - I think we need to agree on primary and secondary questions before we get too far along on slides. Ray - Completely agree on the international focus vs. focusing on overcoming Nike in US.

This is my suggestion for a consolidated primary question:

Does Adidas's corporate strategy, including recent acquisitions and restructuring, stay true to its brand while positioning itself to improve shareholder value and challenge Nike as the leader of the global sporting goods industry?**

I'll post secondary soon.

Dan 4/17 11:49AM

I agree Ray with international and BRIC focus. I have to work until this afternoon and then I'll start working on slides when I get home. Kyle 4/17 11:33am

Slides look good Ray, I agree this is the direction we should go with their focus in China, Russia and Brazil. I am working on a timeline right now to go over the company history/early success. Thanks - Jeremy 4/17 at 11:30am



I have added some slides about adidas' strentgh in global markets. This might be the direction to take this project. They are really strong in Asia, Eastern Europe, and latin america (all the BRIC countries). I think one of our recommendations should be to be satisfied with #2 in North America, a large, slow growth market, and focus strategy on global expansion, particularly China, Russia, Brazil, and India. Adidas' strong brand in soccer plays well in those markets. Let me know what you think. I will be back on later tongith.

Ray 4/17 at 9:05am

Another main question alternative

Has the adidas growth strategy, initially intended to surpass Nike as leader of global sporting goods industry, been correctly modified through innovation, acquisition, restructuring, and value chain management to place them in their best position to run past Nike while satisfying both shareholder and financial expectations?

Couple of slides on success in the past. I will try to work on more during lunch tomorrow.

-Ray

Hi guys,

I am going to get working on some slides for seconday question "What enabled Adidas to be the market leader in the past?" (product innovaiton and strong reputation among top athletes) and "Has Adidas positioned itself well in developing markets?" (I think it has, but I will show it with some graphs, numbers, financials)

I should have a few slides out here by Saturday morning.

Thanks, Ray

4/15 at 12:00pm

The death of Adi was unfortunate for adidas as it was just about the same time Nike was emerging. adidas underestimated Nike and lost their edge and of course the #1 status in athletic footwear. adidas was all about being innovative and first to market with their innovations. Then when Horst died adidas basically tanked. (no direction, declining quality, no innovation) Their competitive advantage was gone. Louis-Dryfus did alot of good things - cost cutting, new styles, endorsements, but the Saloman acquisition was not perfect, although not all bad. They kept what worked and got rid of the dogs then ran past Reebok to #2. The Reebok acquisition in 2006 brought them alot - also allowed them to reorganize and strategize for the future. (retail space, global supply chain improvements) They now seem to be refocused on what made them strong in the first place, and have coupled that with strategic partnerships, brand building efforts, e-commerce, outsourcing, etc. I think they have evolved their overall goal of being #1 to being #1 or #2 in the markets and categories they compete. Seems like they are positioning themselves to be at the top, enlarging their customer base, and trying to be profitable without attempting the impossible (Nike) Kind of like a Nascar driver at Daytona "putting themselves in a position to win at the end" and doing nothing to crazy along the way.

I would say Nike and adidas watch each other closely and copy what works well for the other. adidas has clearly done that with endorsement attempts.

I am going thru the below questions now and will post some ideas on questions later tonight. Tom

(Just combined everyone's contributions in one post. I think we're off to a good start. Next step is to consolidate. - Dan)

__Primary Question Candidates:__ 1) Does adidas's recent acquistions allign with their brand and history and will they enable adidas to compete with Nike for global leadership in sporting goods? ​2) Is the current growth strategy of Adidas, making aquisitions in order to surpass Nike as the leader of the global sporting goods industry, increasing shareholder value in Adidas or is it costing them market share in areas that it was once a market leader? 3) Is Adidas's goal of overtaking Nike as the leader of the global sporting goods industry alienating their core values through their current growth strategy and ultimately decreasing shareholder value? 4) Does adidas's current structure and recent strategic actions position itself to produce shareholder value and challenge Nike as the leader of the global sporting goods industry?

__Secondary Question Candidates:__
 * 1) How has Adidas's corporate strategy changed over time, specifically before and after the 2005-2006 restructuring?
 * 2) Was the Salomon acquisition successful and why?
 * 3) Was the Reebok acquisition successful and why?
 * 4) Is Adidas more likely to produce shareholder wealth by focusing on its core competencies or pursuing acquisitions that increase the breadth of its product lines?
 * 5) What role do developing countries have in Adidas's future success and how is Adidas's position in those countries?
 * 6) Should Adidas focus on Asia, Europe, etc. and concede 1st place in North America to Nike?
 * 7) Is there another corporate strategy Adidas should be pursuing? (besides global market leader)
 * 8) Can Reebok contribute to future successes at Adidas?
 * 9) Is Adidas' current corporate structure aligned with stated corporate objectives?
 * 10) How does Adidas's aquisitions help position itself against its competitors?
 * 11) Is Adidas focusing too much on future sales (China) at the cost of market share in North America (2008 lost market share to Nike for first time in N. America)
 * 12) What enabled Adidas to be the market leader in the past?
 * 13) How did it lose that lead to Nike?
 * 14) Should Adidas be concerned about loosing North American market share to Nike?
 * 15) Has Adidas positioned itself well in developing markets?
 * 16) What has the adidas brand represented in the past and what does it represent today?
 * 17) Does the acquistion of Reebok threaten to cannibalize adidas footwear and apparal sales?

I haven't read the other posts yet, so these could very well be repetitive or contradictory.

__Primary:__ Does adidas's current structure and recent strategic actions position itself to produce shareholder value and challenge Nike as the leader of the global sporting goods industry?

__Secondary:__ 1) How has Adidas's corporate strategy changed over time, specifically before and after the 2005-2006 restructuring? 2) Was the Salomon acquisition successful and why? 3) Was the Reebok acquisition successful and why? 4) Is Adidas more likely to produce shareholder wealth by focusing on its core competencies or pursuing acquisitions that increase the breadth of its product lines? 5) What role do developing countries have in Adidas's future success and how is Adidas's position in those countries? 6) Should Adidas focus on Asia, Europe, etc. and concede 1st place in North America to Nike?

Dan

Just some thoughts to offer another perspective: Possible primary question: - Is Adidas's goal of overtaking Nike as the leader of the global sporting goods industry alienating their core values through their current growth strategy and ultimately decreasing shareholder value?

Possible secondary questions: - Is there another corporate strategy Adidas should be pursuing? (besides global market leader) - Can Reebok contribute to future successes at Adidas? - Is Adidas' current corporate structure aligned with stated corporate objectives? Kyle

Adding to Ray's questions below here are some possible secondary questions....

How does Adidas's aquisitions help position itself against its competitors? Is Adidas focusing too much on future sales (China) at the cost of market share in North America (2008 lost market share to Nike for first time in N. America) - this can be worded better... Possible primary question... Is the current growth strategy of Adidas, making aquisitions in order to surpass Nike as the leader of the global sporting goods industry, increasing shareholder value in Adidas or is it costing them market share in areas that it was once a market leader? (once again this can be re-worded or changed completely if you guys think I am off here.) Once we decide on some of the questions, I will probably start throwing together some slides (Saturday) in hopes that we do not have to work on this late Sunday. Thanks - Jeremy



Hey guys, Sorry I missed class on Monday. All I can say is never again will I eat seafood at an Easter buffet. Enough said! Here is my lengthy outline of the adidas case. I will post additional question possibilites and responses to Ray's thoughts below some time Sunday. Tom

Hi guys

Attached are my notes on the adidas case. Pretty short case, I felt like it was missing a lot of info, primarily data about Nike.

As for central and secondary questions - I think the central question that kept coming into my mind was if adidas's recent acquistions allign with their brand and history and will they enable adidas to compete with Nike for global leadership in sporting goods?

Some secondary questions we might want to look at...

What enabled Adidas to be the market leader in the past? How did it lose that lead to Nike? Should Adidas be concerned about loosing North American market share to Nike? Has Adidas positioned itself well in developing markets? What has the adidas brand represented in the past and what does it represent today? Does the acquistion of Reebok threaten to cannibalize adidas footwear and apparal sales?

I am sure we can word these better and maybe you all have a different perspective from me.

We can discuss more before/after class on Monday.

Thanks, Ray



4/9/10 at 2:38pm